Luxury Taxes and Consumer Behavior on Branded Goods: Case Study in Indonesia Market

Indonesian government issued PMK (Minister of Finance Regulation) No. 106/PMK.010/2015 toabolish PPnBM types for branded goods. The background of the issuance of this regulation is because ofthe fast status of goods becoming non-luxurious because they are widely consumed by the public and thegovernment wants to maintain people's purchasing power and encourage domestic industry where severaltypes of goods have been produced domestically. This study aims to determine and analyze the effect ofeliminating PPnBM branded goods on consumer behavior in the Surabaya area. The population in thisstudy are people who live in Surabaya and have branded goods. Based on the results of the tests carriedout, the elimination of PPnBM on branded goods has an influence on consumer behavior. It can beconcluded that the lack of understanding of branded goods consumers regarding the implementation of thisabolition makes how they choose, buy, use, or regulate branded goods more influenced by other factors.